Labour-Intensive production is used when...

Cards (5)

  • The cost of labour is relatively cheaper than the cost of machinery.
  • The production process requires specific skills.
  • The use of machinery would be impractical due to lack of space or mobility.
  • The production process relies on the ability of humans to think, act on initiative and problem-solve.
  • The production process requires flexibility, for example job production will use a high proportion of labour as specialist skills will be needed to make unique products.